The Reserve Fund - Creation and Use in Contributory Organizations set up by Local Government Units

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F18%3A43898889" target="_blank" >RIV/60076658:12510/18:43898889 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Reserve Fund - Creation and Use in Contributory Organizations set up by Local Government Units

Original language description

The reserve fund of the contributory organizations combines a source fund (generated from an economic result) and a monetary fund (generated from received gifts and unused balances of operating subsidies granted from the budget of the European union). If an entity wants to ensure a full financial coverage of the reserve fund, the entity should not allocate the profit to the fund, for which there is no certainty of the financial coverage. However, as stated in Act No. 250/2000 Coll., On Budgetary Rules of Territorial Budgets, as amended, in § 30, the reserve fund is formed from the profit of the contributory organization on the basis of an approval of its amount by a founder of the organization after the end of the year, reduced by possibly transfers to the reward fund. The unused balances of the operating subsidies as the source of the reserve fund give rise to further accounting problems. These unused balances are clearly a liability of the contributory organization to the grant provider, however, accounting rules consider them to be the own source. Czech Accounting Standard No. 704 – Funds clearly defines the accounting rules for the creation of the reserve fund on the basis of the unused balances of the operating subsidies, however, these accounting procedures are difficult to apply in practice. This problem is not closer methodically regulated by the Ministry of Finance. In the Czech Republic, therefore, accounting practices are differentiated.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings of the 12th International Scientific Conference INPROFORUM. Innovations, Enterprises, Regions and Management

ISBN

978-80-7394-726-2

ISSN

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e-ISSN

neuvedeno

Number of pages

5

Pages from-to

61-65

Publisher name

Jihočeská univerzita v Českých Budějovicích, Ekonomická fakulta

Place of publication

České Budějovice

Event location

České Budějovice

Event date

Nov 1, 2018

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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